Storage solutions company Maxtec`s after-tax loss deepened by 28.4% to R9.56 million in the year to August.
<B>Salient figures</B>
Maxtec results for the year to 31 August 2003.
Previous year`s figures in parentheses.
Revenue: R64.2m (R92.85m)
Operating profit: -R7.47m (-R12.02m)
Profit before taxation: -R8.43m (-R11.33m)
Net profit after tax: -R9.56m (-R7.45m)
EPS: -10.8c (-8.4c)
HEPS: -10.6c (-9.3c)
Current assets: R14.23m (R27.46m)
Cash resources: R8 000 (R226 000)
Current liabilities: R14.85m (R19.99m)
Cash generated from operations: -R1.48m (R701 000)
Auditor Fisher Hoffman PKF (JHB)`s unqualified audit report contains a matter of emphasis relating to the going concern aspect of the group.
Executive chairman George Talbot says the increase in the after-tax loss came in spite of management`s efforts and was the result of various factors.
"These factors included deflation related to the cost of goods, the resulting lower turnover, stock write-downs and a decision not to raise a deferred tax asset in respect of the current year`s loss," Talbot says.
He says the group continues to focus sales on data storage, networking and security solutions solely via the reseller channel. "Growing service-related annuity income is still an objective that has not been achieved."
Talbot says the group is continuing to establish new supplier alliances and distribution agreements that will ultimately, together with increasing services business activities, improve Maxtec`s performance.
"Further cost reductions have been made since year-end and the sales pipeline of prospects looks encouraging."
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